Thread: Best collections method?

Bhuzzers, I need advice.

When I rented a theater for my student show months ago, they asked me to write a check for the rental and a second check for a deposit. The deposit check wasn't supposed to be cashed unless I left the theater in bad condition.

After the show, the theater 'accidentally' cashed my deposit. I do believe it was an accident -- but I've called repeatedly since then, and my contact person keeps blaming the treasurer and saying that she thinks a refund is on its way to me, but the refund never comes.

Now my contact person isn't even returning my phone calls. I know money's tight for this theater, it's a community project and a historic rehab operation. I suspect they're putting me off because they don't actually have the cash on hand to reimburse me.

But I NEED that money NOW!!! I don't have an attorney on hand to call (and can't afford one) and bringing a small claim could take months or a year.

Anyone have any ideas?

Instead of phoning, go directly to the source and directly ask "why" the money hasn't been sent to you; of course you would do this pleasantly.

Send a demand letter to the governing entity ...certified...then a visit them with a copy of the letter in hand. Visit the board director if it is a non profit.

A local collection agency is an option too. They would take a percentage for collecting, but they will be very persistent.

I would go talk to them face-to-face if you can. Nothing unpleasant, its just a faster way to get results. Its hard to ignore or put someone off when you are right there in front of them. If they don't have the money, they don't have it. But you can make sure you let them know you aren't going to let it slide.

The director returned my call today! Left the same message she's left before, promising to talk to the treasurer and call me back....

But I'll just stay on top of her, I guess -- or maybe ask for the treasurer's number so I can communicate directly with him.

There's nowhere for me to show up to talk to anyone in person, unless I can find out when their next meeting is, or catch them at the theater during an actual show or rehearsal. Collection agencies around here will only take you on if you're a good size client -- the one I used to use for the magazine dropped me because I only had a few cases a year.

I can send a certified letter, though, and I will if I don't get anywhere with the treasurer. Hmmm, maybe I should ask the director where the treasurer works so I can drop in on him? Think she'd tell me?

Thanks for the ideas! I'll keep on it.

I would send a certified letter, as Anala suggests, clearly outlining your expectations of them, the date by which you expect to receive your refund, and the steps you will take if you have not received it by that date.

e.g. "I have attempted in good faith to secure a refund in the amount of $X for my deposit check that was cashed by your organization on Y date in breach of our contract. If I have not received a check from your organization for this amount in full, sent via registered mail to the address below, by November 30, I will file a court claim for the amount owing."

It sounds like they're putting you off because they think you'll wait and not really go after them. It would be inconvenient and embarrassing for their business to wind up in small claims court because of this, so I think you just need to scare them with a deadline to get them moving.

Good luck with it, Lauren. Hopefully they'll get their tushes in gear.

Originally Posted by Ainsley

I would send a certified letter, as Anala suggests, clearly outlining your expectations of them, the date by which you expect to receive your refund, and the steps you will take if you have not received it by that date.

e.g. "I have attempted in good faith to secure a refund in the amount of for my deposit check that was cashed by your organization on Y date in breach of our contract. If I have not received a check from your organization for this amount in full, sent via registered mail to the address below, by November 30, I will file a court claim for the amount owing."

It sounds like they're putting you off because they think you'll wait and not really go after them. It would be inconvenient and embarrassing for their business to wind up in small claims court because of this, so I think you just need to scare them with a deadline to get them moving.

Good luck with it, Lauren. Hopefully they'll get their tushes in gear.

Brilliant, I think I'll use this word for word!

You might want to include a reference to a letter to the BBB. The following statement immediately made me think how they would feel the impact of negative BBB remarks during the historic rehab. Hopefully they will quickly reimburse you but the fear of negative ratings can be a powerful bargaining tool.

"I know money's tight for this theater, it's a community project and a historic rehab operation."

Originally Posted by Lauren_

Brilliant, I think I'll use this word for word!

I'm glad I could help!